Information in this release is for the month of July 2010, compared with July 2009, unless otherwise stated.
Exports
The value of merchandise exports for the month of July 2010 was $3.6 billion, up $394 million (12 percent) from July 2009. This is the highest value ever recorded for exports for a July month, with the next highest being $3.4 billion in July 2008.
The trend for merchandise exports has been growing strongly since September 2009 and is now at a similar level to its previous peak in late 2008. Following a 10-month decline to September 2009, the trend has risen 18 percent.
Key increases and decreases in exports, by commodity grouping and by country of destination, were as follows:
By commodity:
- Milk powder, butter, and cheese led the increase in export commodities, up $179 million (32 percent). Unsweetened whole milk powder was the leading contributor, due to higher prices. Natural milk constituents and cheddar cheese were also significant contributors to the increase.
- Ships, boats, and floating structures recorded the second-largest increase, up $57 million (up more than 10-fold) due to an increase in the export of pleasure boats.
- Logs, wood, and wood articles recorded the next largest increase, up $49 million (24 percent), led by increases in pinus radiata-based commodities, particularly logs and sawn or chipped pinus radiata.
- Fruit was up $28 million (16 percent), due mainly to an increase in kiwifruit.
- Decreases in exports in July were fewer and smaller.
- Meat and edible offal recorded the largest decrease, down $32 million (8.3 percent), led by a decline in frozen lamb cuts with bone in.
- Crude oil recorded the second-largest decrease, down $24 million (12 percent).
By country of destination:
- Australia recorded the largest increase, up $96 million (13 percent). Crude oil exports accounted for more than half this increase. Milk powder, butter, and cheese were also a significant contributor.
- The People’s Republic of China recorded the second-largest increase, up $90 million (30 percent). This increase was dominated by milk powder, butter, and cheese (mainly due to a rise in unsweetened whole milk powder).
- The Republic of Korea recorded the next largest increase, up $52 million (58 percent) over a variety of commodities. Fruit; milk powder, butter, and cheese; and meat and edible offal were the larger contributors.
- Italy was up $49 million, to more than double the export value for July 2009, mainly due to an increase in pleasure boats.
- Venezuela recorded the largest decrease, down $37 million (76 percent), almost entirely due to a fall in unsweetened whole milk powder.
- Singapore and the United Kingdom recorded the next largest decreases, down $25 million (26 percent) and $19 million (15 percent), respectively.
Imports
The total value of merchandise imports for July 2010 was $3.8 billion, up $402 million (12 percent) from July 2009.
The trend for total merchandise imports has now risen for 10 consecutive months, although recent months indicate the trend is flattening out. Compared with the same time last year, the trend is 15 percent higher, but this is still 13 percent lower than its peak in September 2008.
All the broad economic categories rose, apart from a slight fall in capital goods.
- Intermediate goods recorded the largest increase, up $253 million (16 percent). Leading this increase was a rise in processed industrial supplies such as chemicals and fertilisers, and a rise in fuels and lubricants.
- Passenger motor cars had the second-largest increase, up $65 million (40 percent). However, this increase compares with a very low value for July 2009, which was the lowest July value since 1998.
- Consumption goods had a $42 million (4.7 percent) increase for July 2010. The main contributor was the consumer durable goods (not elsewhere specified) category. This category includes items such as textiles, household appliances, lawnmowers, televisions, and furniture.
- Capital goods recorded the only fall, down $3 million (0.5 percent). A $51 million (42 percent) decrease in transport equipment was mostly offset by a $48 million (11 percent) increase in machinery and plant. The fall in transport equipment was led by aircraft imports, whereas the rise in machinery and plant was led by computers and office equipment. Excluding aircraft, capital goods increased $71 million (14 percent).
Most import commodity groupings recorded increases compared with July 2009. Key increases and decreases in imports, by commodity grouping and by country of origin, were as follows:
By commodity:
- Petroleum and products had the largest increase, up $137 million (25 percent), led by a price- and quantity-driven increase in diesel imports, and a quantity-driven increase in crude oil imports. Crude oil is imported in large, irregular shipments, which can cause large fluctuations in the series.
- Vehicles, parts, and accessories were the second-largest increase, up $87 million (34 percent), led by increases in diesel cars with a cylinder capacity exceeding 1500cc, and petrol cars with a cylinder capacity of 1500cc–3000cc.
- Fertilisers recorded the next largest increase, up $48 million (151 percent), with the main contributors being potassium-based fertilisers, and fertilisers containing two or three of nitrogen, phosphorus, or potassium.
- Mechanical machinery and electrical machinery both had notable increases, $43 million (10 percent) and $34 million (12 percent), respectively.
- Aircraft and parts recorded the largest offsetting decrease for the month, down $82 million (69 percent), due to large aircraft being imported in July 2009.
- Optical, medical, and measuring equipment had the next largest decrease, down $15 million (12 percent). Leading this decrease was a decline in the import of instruments and appliances used in medical, surgical, dental, or veterinary sciences.
By country of origin:
- Japan had the largest increase in imports for the July 2010 month, up $123 million. Automotive diesel led this increase, with a rise of $79 million. None had been imported in July 2009. Passenger motor vehicles also contributed to the increase, up $22 million (26 percent).
- The United Arab Emirates increased $104 million; more than 10 times the amount imported in July 2009. Almost the entire movement resulted from crude oil imports. Crude oil import shipments tend to fluctuate by country of origin, which gives rise to large changes in quantities and values.
- The People’s Republic of China recorded the next largest increase, up $100 million (20 percent). Leading the increase was mechanical machinery (up $34 million or 40 percent), followed by fertilisers (up $15 million from less than $1 million in July 2009), and iron and steel, and articles (up $14 million or 75 percent).
- Australia had the largest offsetting decrease, down $88 million (12 percent). The majority of this decrease was in the petroleum and products category (down $92 million or 74 percent), with crude oil and motor spirit decreasing $66 million and $24 million, respectively.
Trade balance
In July 2010, the trade balance was a deficit of $186 million, or 5.2 percent of the value of exports. The July 2009 month showed a similarly sized deficit of $178 million, or 5.6 percent of exports. For the five July months before 2009, the average monthly trade balance was a deficit of 24 percent of total exports.
The annual trade balance for the year ended July 2010 was a surplus of $573 million (1.4 percent of exports). This compares with the average deficit of 15 percent of exports for the previous five July years.
Three months ended July 2010
Exports of merchandise goods for the three months ended July 2010 were valued at $11.6 billion, a $1.2 billion rise (11 percent) from the same period of 2009.
In the three months ended July 2010, key decreases and increases in exports compared with the three months ended July 2009 were as follows:
By commodity:
- Milk powder, butter, and cheese had the largest increase, up $525 million (27 percent), led by unsweetened whole milk powder, and with significant contributions from cheddar cheese and natural milk constituents.
- Logs, wood, and wood articles recorded the second-largest increase, up $160 million (26 percent). Pinus radiata-based commodities, particularly logs and sawn or chipped pinus radiata, led this increase, as was the case for the July month.
- Ships, boats, and floating structures had the third-largest increase, up $93 million (to more than double the export value for July 2009) due to increased exports of pleasure boats.
- Aluminium and aluminium articles had the next largest increase, up $89 million (43 percent), driven by a rise in unwrought aluminium.
- Aircraft and parts recorded the largest fall, down $52 million (60 percent), due mainly to no large aircraft being exported in the latest three months.
- Meat and edible offal had the second-largest fall, down $34 million (2.4 percent), led by falls in lamb cuts that were partly offset by rises in beef cuts.
- Fruit recorded the next largest fall, down $32 million (4.6 percent), led by falls in some apple varieties and kiwifruit.
By country of destination:
- Australia had the largest increase, up $389 million (18 percent), led by a rise in crude oil.
- China recorded the second-largest increase, up $255 million (27 percent). Milk powder, butter, and cheese, up $234 million, dominated the increase, with the value more than doubling (driven by unsweetened whole milk powder) from 2009. Another notable contributor was logs, wood, and wood articles.
- Japan had the next largest increase, up $235 million (33 percent), led by increases in aluminium, and aluminium articles and logs, wood, and wood articles. Fruit, and milk powder, butter, and cheese were other notable contributors.
- Singapore had the largest decrease, down $69 million (25 percent), and Indonesia the second-largest decrease, down $51 million (16 percent). Both decreases were due mainly to crude oil, with none being exported to either destination in the latest three months.
- The United Kingdom recorded the next largest decrease, down $49 million (11 percent), mainly due to a decrease in meat and edible offal that was partly offset by an increase in wine.
Imports of merchandise goods for the three months ended July 2010 were valued at $10.8 billion, up 7.9 percent from the same period of 2009.
In the three months ended July 2010, key increases and decreases in the value of imports compared with the three months ended July 2009 were as follows:
By commodity:
- The petroleum and products category had the largest increase, up $729 million (61 percent), led by quantity- and price-driven movements for crude oil (up $479 million or 70 percent), and automotive diesel (up $172 million or 160 percent).
- Vehicles, parts, and accessories increased $323 million (44 percent) – the second-largest increase, led by passenger motor vehicles (up $268 million), and goods transport vehicles (up $64 million).
- Ships, boats, and floating structures had the next largest increase, with a 10-fold increase of $91 million. This increase was mostly due to importing an offshore patrol vessel, the HMNZS Wellington in June 2010.
- Aircraft and parts had the largest decrease, down $661 million (80 percent), with the majority of this attributable to the one-off import of large aircraft, valued at $571 million, in June 2009.
By country of origin:
- United Arab Emirates recorded the largest increase, up $315 million due to an increase in crude oil imports.
- Japan showed the next largest increase with a $261 million rise (43 percent). Passenger motor vehicles led the increase, up $115 million (52 percent), followed by refined and partly refined petroleum products with a threefold increase of $99 million.
- Singapore had the third-largest increase, up $224 million (93 percent). Motor spirit and automotive diesel were the main contributors.
- France had the largest offsetting decrease, down $633 million (82 percent), due to the previously mentioned one-off aircraft import.
Exchange rate movements
According to the Reserve Bank’s Trade Weighted Index, the New Zealand dollar rose 0.1 percent in July 2010 compared with June 2010, and is up 10.9 percent compared with July 2009.
Updates to previous statistics
Provisional values published on 29 July 2010 have been updated. Merchandise trade statistics for the latest three months are provisional to allow for the inclusion of late data and amendments.
For technical information contact:
Henry Minish or Scott Davis
Christchurch (03) 964 8700
Email: overseastrade@stats.govt.nz.
Next release...
Overseas Merchandise Trade: August 2010 will be released on 29 September 2010.